

NOTE 4		Earnings Per Share

Table 4.1 reconciles basic and diluted EPS amounts:



Earnings per share
Table	4.1
		Years Ended December 31,
(In thousands, except per share data)		2018		2017		2016
Basic earnings per share:
Net income		$	670,097	$	355,761	$	342,517
Weighted average common shares outstanding - basic		365,406		362,380		342,890
Basic earnings per share		$	1.83	$	0.98	$	1.00
Diluted earnings per share:
Net income		$	670,097	$	355,761	$	342,517
Interest expense, net of tax ⁽¹⁾:
2% Notes		—		907		6,111
5% Notes		—		1,709		6,362
9% Debentures		18,264		15,027		15,893
Diluted income available to common shareholders		$	688,361	$	373,404	$	370,883
Weighted-average shares - basic		365,406		362,380		342,890
Effect of dilutive securities:
Unvested restricted stock units		1,644		1,493		1,470
2% Notes		—		8,317		54,450
5% Notes		—		3,548		13,107
9% Debentures		19,028		19,028		20,075
Weighted average common shares outstanding - diluted		386,078		394,766		431,992
Diluted income per share		$	1.78	$	0.95	$	0.86


⁽¹⁾	Interest expense for the years ended December 31, 2018, 2017 and 2016 has been tax effected at a rate of 21%, 35%, and 35%, respectively.

For the years ended December 31, 2018, 2017, and 2016, all of our then outstanding Convertible Senior Notes and Convertible Junior Subordinated Debentures are reflected in diluted earnings per share using the “if-converted” method. Under this method, if dilutive, the common stock related to the outstanding Convertible Senior Notes and/or Convertible Junior Debentures is assumed issued as of the beginning of the reporting period and the related interest expense, net of tax, is added back to earnings in calculating diluted EPS.